Biolipox Signs Asset Purchase Agreement with Inflazyme Pharmaceuticals
The Swedish biotech company Biolipox AB and Inflazyme Pharmaceuticals Ltd, a Canadian biopharmaceutical company located in Vancouver and listed on the Toronto Stock Exchange (TSX-IZP), have entered into a definitive asset purchase agreement whereby Biolipox will acquire the majority of Inflazyme’s assets for a total gross proceeds of CAD 11 million, plus a potential royalty payment.
The assets include Inflazyme’s research and development programs on the LSAIDs™, the PDE inhibitors and the Protein Therapeutics Technology.
Biolipox will pay $4 million immediately upon closing of the transaction. The remaining $7 million would be paid only upon the successful attainment of certain milestones. The transaction also includes a potential royalty payment in the low single digits on net sales of the first PDE inhibitor compound brought to market.
“With the acquisition of these interesting development programs from Inflazyme, we strengthen our position within respiratory and inflammatory diseases. Inflazyme’s novel technologies have exciting potential which we believe will fit nicely in the Biolipox R&D portfolio”, commented Torbjörn Bjerke, President and CEO of Biolipox.
“The Inflazyme management team and the Board have evaluated a number of strategic options since February 2007. We have decided that our shareholders will be best served through this transaction with Biolipox,” said Dr Kevin Mullane, President and CEO of Inflazyme. He also added, “Biolipox recognizes the value inherent in our proprietary technologies and they have the financial and technical resources to advance these programs.”
The transaction is subject to approval by Inflazyme’s shareholders, obtaining consents from regulatory authorities including the Toronto Stock Exchange, and other customary closing conditions. The proposed transaction has the unanimous support of Inflazyme’s Board of Directors. Inflazyme has called a special meeting of their shareholders to seek approval of this transaction. The meeting is to be held in Vancouver on October 25, 2007.